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2016 Nestle Extrated
2016 Nestle Extrated
55
Group Company
2016 2015 2016 2015
Note RM’000 RM’000 RM’000 RM’000
ASSETS
Property, plant and equipment 3 1,353,050 1,369,874 - -
Intangible assets 4 62,400 62,814 - -
Investments in subsidiaries 5 - - 188,022 188,022
Investment in an associate 6 4,224 4,114 3,000 3,000
Deferred tax assets 7 20,155 11,068 - -
Trade and other receivables 8 24,745 25,048 - -
Total non-current assets 1,464,574 1,472,918 191,022 191,022
EQUITY
Share capital 234,500 234,500 234,500 234,500
Reserves 43,896 108,976 33,000 33,000
Retained earnings 368,825 365,120 304,901 305,667
Total equity attributable to owners of the Company 11 647,221 708,596 572,401 573,167
LIABILITIES
Loans and borrowings 12 93,146 96,451 - -
Employee benefits 13 86,140 81,117 - -
Deferred tax liabilities 7 91,260 77,539 - -
Total non-current liabilities 270,546 255,107 - -
The notes on pages 61 to 108 are an integral part of these financial statements.
56 CORPORATE GOVERNANCE & FINANCIAL REPORT 2016
Group Company
2016 2015 2016 2015
Note RM’000 RM’000 RM’000 RM’000
Revenue 5,063,506 4,837,957 633,450 609,499
Cost of sales (3,066,051) (2,972,500) - -
Gross profit 1,997,455 1,865,457 633,450 609,499
Other income 3,623 1,476 - -
Selling and distribution expenses (1,025,937) (927,626) - -
Administrative expenses (164,034) (143,704) (3,084) (1,894)
Other expenses (12,327) (35,426) - -
Results from operating activities 15 798,780 760,177 630,366 607,605
Finance income 1,140 1,127 2,511 3,107
Finance costs (33,836) (34,376) - -
Net finance (costs)/income (32,696) (33,249) 2,511 3,107
Share of profit of an equity accounted associate,
net of tax 410 783 - -
Profit before tax 766,494 727,711 632,877 610,712
Income tax expense 17 (129,367) (136,978) (493) (954)
Profit for the year 637,127 590,733 632,384 609,758
Other comprehensive (expense)/income, net of tax
Item that is or may be reclassified subsequently
to profit or loss
Cash flow hedge (65,080) 76,308 - -
Item that will not be reclassified subsequently
to profit or loss
Remeasurement of defined benefit liability (272) (20,357) - -
Other comprehensive (expense)/income
for the year, net of tax 18 (65,352) 55,951 - -
Total comprehensive income for the year 571,775 646,684 632,384 609,758
Basic and diluted earnings per ordinary share (sen) 19 272 252
The notes on pages 61 to 108 are an integral part of these financial statements.
CORPORATE GOVERNANCE & FINANCIAL REPORT 2016 57
The notes on pages 61 to 108 are an integral part of these financial statements.
58 CORPORATE GOVERNANCE & FINANCIAL REPORT 2016
The notes on pages 61 to 108 are an integral part of these financial statements.
CORPORATE GOVERNANCE & FINANCIAL REPORT 2016 59
Group Company
2016 2015 2016 2015
Note RM’000 RM’000 RM’000 RM’000
Cash flows from operating activities
Profit before tax 766,494 727,711 632,877 610,712
Adjustments for:
Amortisation of intangible assets 4 414 275 - -
Depreciation on property, plant and equipment 3 132,779 125,570 - -
Dividend income - - (633,450) (609,499)
Expenses related to defined benefit plans 13 4,665 8,932 - -
Finance costs 33,836 34,376 - -
Finance income (1,140) (1,127) (2,511) (3,107)
(Gain)/Loss on disposal of property,
plant and equipment 15 (580) 429 - -
Impairment on property, plant and equipment 3 4,847 - - -
Property, plant and equipment written off 15 220 850 - -
Share-based payments 15 5,248 6,685 - -
Share of profit of an equity accounted
associate, net of tax (410) (783) - -
Operating profit/(loss) before changes
in working capital 946,373 902,918 (3,084) (1,894)
Change in inventories (41,075) (43,971) - -
Change in trade and other payables 185,189 24,482 (173) (170)
Change in trade and other receivables (22,655) 26,165 1,310 (567)
Cash generated from/(used in) operations 1,067,832 909,594 (1,947) (2,631)
Dividends received from subsidiaries - - 633,150 715,225
Employee benefits paid 13 - (17,087) - -
Income tax paid (145,046) (141,598) (864) (776)
Net cash from operating activities 922,786 750,909 630,339 711,818
60 CORPORATE GOVERNANCE & FINANCIAL REPORT 2016
Group Company
2016 2015 2016 2015
Note RM’000 RM’000 RM’000 RM’000
Cash flows from investing activities
Acquisition of property, plant and equipment (ii) (123,136) (191,184) - -
Acquisition of intangible assets - (2,065) - -
Dividends received from associate 300 300 300 300
Finance income received 1,140 1,127 2,511 3,107
Proceeds from disposal of property, plant and equipment 2,694 854 - -
Net cash (used in)/from investing activities (119,002) (190,968) 2,811 3,407
Cash and cash equivalents included in the statements of cash flows comprise the following statements of financial position amounts:
Group Company
2016 2015 2016 2015
Note RM’000 RM’000 RM’000 RM’000
Cash and bank balances 10 23,996 13,901 - -
Bank overdraft 12 (179,753) (98,366) - -
(155,757) (84,465) - -
During the financial year, the Group acquired property, plant and equipment with an aggregate cost of RM123,136,000 (2015: RM203,820,000),
of which nil (2015: RM12,636,000) were acquired by means of finance leases.
The notes on pages 61 to 108 are an integral part of these financial statements.
CORPORATE GOVERNANCE & FINANCIAL REPORT 2016 61
Nestlé (Malaysia) Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia
Securities Berhad. The address of its registered office, which is also its principal place of business is as follows:
The consolidated financial statements of the Company as at and for the financial year ended 31 December 2016 comprise the Company and its
subsidiaries (together referred to as the “Group”) and the Group’s interest in an associate. The financial statements of the Company as at and for the
financial year ended 31 December 2016 do not include other entities.
The principal activity of the Company is that of an investment holding company, whilst the principal activities of the subsidiaries are as stated in
note 5 to the financial statements.
The holding company during the financial year was Nestlé S.A., a company incorporated in Switzerland.
The financial statements were authorised for issue by the Board of Directors on 28 February 2017.
1. BASIS OF PREPARATION
The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial Reporting Standards
(“MFRSs”), International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.
The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards
Board (“MASB”) but have not been adopted by the Group and the Company:
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2017
• Amendments to MFRS 12, Disclosure of Interests in Other Entities (Annual Improvements to MFRS Standards 2014-2016 Cycle)
• Amendments to MFRS 107, Statement of Cash Flows – Disclosure Initiative
• Amendments to MFRS 112, Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018
• MFRS 9, Financial Instruments (2014)
• MFRS 15, Revenue from Contracts with Customers
• Clarifications to MFRS 15, Revenue from Contracts with Customers
• IC Interpretation 22, Foreign Currency Transactions and Advance Consideration
• Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards
2014-2016 Cycle)
• Amendments to MFRS 2, Share-based Payment – Classification and Measurement of Share-based Payment Transactions
• Amendments to MFRS 4, Insurance Contracts – Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts
• Amendments to MFRS 128, Investments in Associates and Joint Ventures (Annual Improvements to MFRS Standards 2014-2016 Cycle)
• Amendments to MFRS 140, Investment Property – Transfers of Investment Property
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019
• MFRS 16, Leases
MFRSs, Interpretations and amendments effective for annual periods beginning on or after a date yet to be confirmed
• Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures – Sale or
Contribution of Assets between an Investor and its Associate or Joint Venture